• IRS Raises the Standard Mileage Rate
  Responding to public pressure and the rising price of gas, the IRS just increased the standard mileage rate that can be used to claim deductions, as well as employee reimbursement, for business driving. For the second half of 2008 -- from July 1 through December 31 -- the rate jumps to 58.5 cents for every business mile traveled (plus business-related parking fees and tolls). The previous rate of 50.5 cents per mile remains in effect for January 1 through June 30. (Read More)
• House Committee on Small Business Recommends 7 Key Changes to Internal Revenue Code
  The U.S. House Committee on Small Business, calling the Internal Revenue Code an obstacle to entrepreneurial growth and progress because of its size, complexity, and age, proposed last Thursday seven specific changes to the Code that the Committee believes can be, "accomplished in a short period of time - and without delay." The provisions, which include a standard deduction for the home office, a provision for shorter depreciation schedules and a deduction for health insurance for self-employed entrepreneurs, are contained in the report, "Seven Ways to Stimulate the Economy by Updating the Internal Revenue Code." (Read More)
• Ways to Save for Higher Education
  Seems that just about every family in America struggles with the rising costs of college education, and how to pay for it without piling up a whole lot of debt. Here is a summary of college investment accounts worth considering. Of course, starting to save when your children are young is the first step toward accumulating the greatest savings. (Read More)
• Economic Stimulus Package Aims to Spur U.S. Economy
  The Economic Stimulus Package Act of 2008 is designed to boost the U.S. economy by providing tax rebates to individuals and tax incentives for businesses. (Read More)
• Economic Stimulus Package Favors Write-Offs for New 2008 Automobiles
  The Section 179 expensing election under the new Economic Stimulus Package Act of 2008 allows a current deduction for newly acquired assets that otherwise would have to be depreciated over a number of years. New cars, light trucks and heavy SUVs purchased in 2008 qualify for the bonus depreciation deduction. (Read More)
• FIN 48 Deadline Postponed for Private Companies
  On November 7, 2007, the Financial Accounting Standards Board (FASB) voted to delay the effective date of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), for private companies. Those that haven't already implemented the new rules can now postpone compliance until periods beginning after December 15, 2007. For most private companies, this reprieve means that FIN 48 will affect only their calendar-year 2008 and later financial statements. (Read More)
• Important Change in IRS Section 409A Compliance Deadline for Nonqualified Deferred Compensation Plans
  On Sept. 10, 2007, the Treasury Department and the IRS announced, in IRS Notice 2007-78, that companies will have until Dec. 31, 2008, to bring documents into compliance with the final nonqualified deferred compensation regulations under Section 409A of the Internal Revenue Code. Previously, the deadline was Dec. 31, 2007. (Read More)
• Disregarded Entitles to Pay Their Own Employment and Excise Taxes Under Final Regs
  Final regs treat single-owner eligible entities that are disregarded entities (disregarded as separate entities from their owners) and qualified subchapter S subsidiaries (QSubs) as separate entities for employment tax and related reporting requirements. They also treat these disregarded entities as separate entities for certain excise taxes reported on Forms 720, 730, 2290, and 11-C, as well as for excise tax refunds or payments claimed on Form 8849, and excise tax registration on Form 637. For employment taxes, the regs apply to wages paid on or after Jan. 1, 2009. For excise taxes, the regs apply to liabilities imposed and actions first required or permitted in periods beginning on or after Jan. 1, 2008. (Read More)
• Making the Best Tax Use of a Vacation Home Under the Latest Rules
  A soft real estate market in many areas has led to buying opportunities in vacation or second homes. This market offers a chance to provide families with a place to rest and relax at a possibly reduced cost, and at the same time, have a shot at capital appreciation over the long term. It also offers a chance to earn some rental income when the owner or family members aren't using the property. (Read More)
• Recordkeeping & Reporting Requirements for New PA S Corporations
  Pennsylvania Subchapter S Corporations no longer have to file a Pennsylvania S Election and Shareholders Consent to be an S Corp. Now all federal S Corps are Pennsylvania S Corps. The new rules impact personal income tax recordkeeping and reporting requirements of distributions to shareholders. (Read More)
• 2007 Depreciation Dollar Limits for Business Autos, Light Trucks & Vans
  The IRS has released the inflation-adjusted depreciation limits for business autos, light trucks and vans (including minivans) placed in service in 2007, and the annual income inclusion amounts for such vehicles first leased in 2007. (Read More)
• New Tax Law Raises Expense Deduction on New Business Equipment
  In December, 2006, Congress issued Rev. Proc. 2007-16, which allows the Section 179 expensing election on new business equipment to be claimed or revoked on amended returns for 2003 through 2009. Previously, the election was only allowed on originally filed tax returns. Taxpayers who overlooked it were not allowed to claim the election on amended returns. This is good news for C corporations, in particular, since they are allowed to deduct their own Section 179 expenses in addition to what is claimed on the Form 1040s of their owners. (Read More)
• Taxpayers Eligible for Refund of Excise Tax Paid on Long-Distance Telephone Service
  The Internal Revenue Service announced May 25, 2006, that it will stop collecting the federal excise tax on long-distance telephone service. In addition, taxpayers will be eligible to file for refunds of all excise tax they have paid on long-distance service billed to them between Feb. 28, 2003, and Aug. 1, 2006. Interest will be paid on these refunds as well. (Read More)
• New Jersey Residents: Sales & Use Tax Changes
  Gov. Jon S. Corzine signed last July a bill imposing major changes in New Jersey’s Sales & Use Tax law, effective October 1, 2006. The new law imposes tax on goods and services previously exempt; and raises the tax rate from six percent to seven percent. (Read More)
• Florida Residents: Intangible Personal Property Tax Repealed
  August, 2006: A tax on stocks, bonds and other intangible personal property has been repealed by a new bill signed into law by Florida Governor Jeb Bush. Effective January 1, 2007, Florida residents will receive annual savings totaling more than $131 million. (Read More)
• Most Income Received is Taxable - But Not All of It
  Here is a partial list of Nontaxable Income or Partially Taxed Income for use in tax planning. (Read More)
• New Electronic Tax Filing Requirements
  Now tax payments may be filed electronically through the Electronic Federal Tax Payment System (EFTPS). Register online for E-file with the US Department of Treasury at www.IRS.gov. Clients of Heffler, Radetich & Saitta LLP, do not have to register with the Treasury Department, however. The firm is an authorized IRS E-file provider, and will prepare, process and E-file all federal and state individual Income Tax Returns electronically for the 2005 tax reporting year.
  
  EFTPS is available to both individual and business taxpayers. With EFTPS, you can pay all your federal tax payments, including corporate, excise and employment taxes as well as your 1040 quarterly estimated tax payments, via the Internet or by telephone. (Read More)

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